Less than a year after having bought the French sites Ascoval and Hayange, the steel group Liberty Steel launched the search for buyers, we learned, on Saturday, May 8, from the company. The British group, in turmoil because of the difficulties of its owner the magnate Sanjeev Gupta, remains however in search of financing to save Ascoval and Hayange.
“We remain confident in our ability to secure new financing”, But “At the same time, we have started, out of prudence, to explore put options for these companies and we will invite interested parties to submit offers”, the group said in a statement sent to Agence France-Presse, confirming information from the Financial Times.
Liberty Steel, owner in particular of the Ascoval steelworks located in Saint-Saulve (North) and the Hayange rail plant (Moselle), is facing difficulties, in the wake of the bankruptcy of the British finance company Greensill. The latter is a major financier of Liberty Steel’s parent company, GFG Alliance, owned by Indo-British steel magnate Sanjeev Gupta.
The company has mandated Rothschild Bank for this proposed sale, several corroborating sources have informed AFP.
20 million euros to find
“For now, Sanjeev Gupta is still looking to refinance, but officially, we are getting ready for a sale if it does not find the necessary funds to maintain Hayange and Ascoval”, reacted to AFP Grégory Zabot, elected CFDT of the Hayange site. “The two processes are in parallel”, he added fearing above all that this would postpone or even cancel investments planned for the summer on the site.
The state announced at the end of March that it was going to release a loan of 20 million euros to Ascoval to allow the steelworks, with an already turbulent history, to pay salaries and continue activity. But according to Nacim Bardi, CGT delegate for the site, Liberty Steel still has to find an additional 20 million euros.
“When we had the extraordinary CSE [le 29 avril] Liberty was not a seller, Liberty was still looking for the 20 million. Perhaps after that the situation has changed, if he is now a seller, so much the better. (…) We want a new buyer ”, he told AFP. “Given the strength of the steel market and the high quality of the products we make, we remain confident in our ability to secure new financing”Liberty Steel said on Saturday.
Contacted, the Ministry of the Economy declined to comment. In addition to Liberty Steel, the bankruptcy of Greensill has also put other activities in the Gupta galaxy in France in difficulty. The three automotive suppliers belonging to the Alvance group were placed in receivership at the end of April.
These are the Alvance Poitou Fonte and Alvance Aluminum Poitou sites, located in Ingrandes (Vienne), as well as Aluminum Wheels located in Diors near Châteauroux (Indre), which have a total of around 850 employees. To avoid its liquidation and to give the time to find a buyer, the State granted in early May a loan of 10 million euros to the company Alvance.